BOJ’s Kuroda No Fan of Forward Guidance

Bank of Japan Governor Haruhiko Kuroda said central banks should avoid offering overly complicated forward guidance on their policies, warning that doing so could disrupt financial markets and prove to be counter-productive.

He also said that exiting from the current ultra-easy monetary policy may be more difficult than when the BOJ last ended its quantitative easing in 2006, because the bank now loads up on more long-term government debt and risky assets.

“The day of constructive ambiguity is over and transparency is extremely important to avoid unnecessary shock to the economy,” Kuroda told a seminar at the University of Tokyo.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.